Bank of Japan Deputy Governor Ryozo Himino said timely interest-rate increases could prevent inflation from rising sharply and forcing abrupt hikes later. Speaking to business leaders in Urawa, Japan, on Thursday, Aug. 27, Himino said the central bank should pay more attention to upside price risks as underlying inflation approaches its 2% target. He said a weak yen could lift inflation faster than in the past and that exchange-rate effects would be a key policy consideration. Himino also argued that reducing still-loose financial conditions through rate hikes could direct assets toward investments with stronger growth potential.